The British pound depreciated vis-Ã -vis the U.S. dollar today as cable tested bids around the US$ 1.5150 level and was supported around the $1.4990 level. Data released in the U.K. today saw the CIPS PMI services index improve to 48.7 from 45.5 in March, much better-than-expected. Also, Halifax April house prices were off 1.7% m/m and off 17.7% y/y. NIESR reported the U.K. economy will likely contract by 4.3% in 2009, considerably worse than the government€™s current projections. NIESR also sees the U.K. economy growing 0.9% in 2010 and 2.3% in 2011. Cable bids are cited around the US$ 1.4735 level. The euro moved lower vis-Ã -vis the British pound as the single currency tested bids around the ‚¤0.8800 figure and was capped around the ‚¤0.8875 level.
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